Huaming Power EquipmentLtd (XSEC:002270) Stock Valuation, Peer Comparison & Price Targets

Q: What is the Fair Price of 002270 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002270 (CN¥16.93) is trading above our estimate of [[fair value]] (CN¥13.41)

Share Price vs Fair Value

What is the Fair Price of 002270 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002270 (CN¥16.93) is trading above our estimate of fair value (CN¥13.41)

Significantly Below Fair Value: 002270 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002270?

Key metric: As 002270 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 002270. This is calculated by dividing 002270's market cap by their current earnings.
What is 002270's PE Ratio?
PE Ratio	26.3x
Earnings	CN¥576.93m
Market Cap	CN¥15.17b

002270 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.7x
Enterprise Value/EBITDA	21.3x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does 002270's PE Ratio compare to its peers?

The above table shows the PE ratio for 002270 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	25.8x
300475 Shannon Semiconductor TechnologyLtd	24.8x	10.5%	CN¥13.0b
002690 Hefei Meyer Optoelectronic Technology	20.5x	16.2%	CN¥13.0b
300457 Shenzhen Yinghe Technology	26.6x	30.6%	CN¥14.3b
000967 Infore Environment Technology Group	31.2x	24.7%	CN¥15.5b
002270 Huaming Power EquipmentLtd	26.3x	19.8%	CN¥15.2b

Price-To-Earnings vs Peers: 002270 is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the peer average (25.8x).

Price to Earnings Ratio vs Industry

How does 002270's PE Ratio compare vs other companies in the CN Machinery Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
002021 Zoje Resources Investment	4.6x	n/a	US$398.16m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 002270 is good value based on its Price-To-Earnings Ratio (26.3x) compared to the CN Machinery industry average (35.8x).

Price to Earnings Ratio vs Fair Ratio

What is 002270's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

002270 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.3x
Fair PE Ratio	22.6x

Price-To-Earnings vs Fair Ratio: 002270 is expensive based on its Price-To-Earnings Ratio (26.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 002270 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CN¥16.93	CN¥20.91 +23.5%	10.6%	CN¥26.60	CN¥19.00	n/a	8
Nov ’25	CN¥17.15	CN¥21.79 +27.0%	10.9%	CN¥26.60	CN¥19.00	n/a	8
Oct ’25	CN¥17.77	CN¥21.33 +20.1%	9.6%	CN¥24.00	CN¥19.00	n/a	6
Sep ’25	CN¥18.53	CN¥21.80 +17.6%	8.9%	CN¥24.00	CN¥19.00	n/a	5
Aug ’25	CN¥19.43	CN¥21.90 +12.7%	8.2%	CN¥24.00	CN¥19.50	n/a	5
Jul ’25	CN¥22.19	CN¥22.40 +0.9%	6.1%	CN¥24.00	CN¥20.00	n/a	5
Jun ’25	CN¥21.51	CN¥22.40 +4.1%	6.1%	CN¥24.00	CN¥20.00	n/a	5
May ’25	CN¥20.34	CN¥21.67 +6.5%	9.5%	CN¥24.00	CN¥18.00	n/a	6
Apr ’25	CN¥17.82	CN¥17.39 -2.4%	7.4%	CN¥19.00	CN¥15.32	n/a	6
Mar ’25	CN¥16.82	CN¥17.39 +3.4%	7.4%	CN¥19.00	CN¥15.32	n/a	6
Feb ’25	CN¥14.25	CN¥17.06 +19.7%	6.8%	CN¥18.00	CN¥15.32	n/a	5
Jan ’25	CN¥14.12	CN¥16.33 +15.7%	6.1%	CN¥18.00	CN¥15.32	n/a	4
Dec ’24	CN¥13.49	CN¥16.66 +23.5%	8.0%	CN¥18.00	CN¥15.32	n/a	2
Nov ’24	CN¥12.46	CN¥16.66 +33.7%	8.0%	CN¥18.00	CN¥15.32	CN¥17.15	2
Oct ’24	CN¥13.99	CN¥15.29 +9.3%	11.3%	CN¥17.40	CN¥13.16	CN¥17.77	3
Sep ’24	CN¥12.19	CN¥15.29 +25.5%	11.3%	CN¥17.40	CN¥13.16	CN¥18.53	3
Aug ’24	CN¥11.87	CN¥14.09 +18.7%	7.6%	CN¥15.60	CN¥13.16	CN¥19.43	3

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Huaming Power EquipmentLtd Valuation